What does travel insurance cover?
Insurance companies are like any other business; they exist to earn a profit. This means that there are certain types of things that they will not cover, or for which coverage might be an extra-cost add-on.
In general, travel insurance only provides coverage for specific types of situations listed in the policy description. This is in contrast to other types of insurance, such as homeowners or health insurance, which normally cover everything except a list of exclusions. Travel insurance only covers listed items.
Things covered by almost all policies
- Trip cancellation due to health reasons
- Accidents and unforeseen medical emergencies
- Emergency medical evacuation
- Accidental death or dismemberment
- Theft, damage, or loss of baggage
- Baggage delay on the way to your destination
- Natural disaster or weather conditions rendering destination uninhabitable
- Delays due to weather
- Delays due to stolen passports, money, etc.
- Inability to return at the scheduled time and date due to unforeseen medical condition
- Missed connection to cruise ship
- Concierge services via telephone, such as interpretation (translation), re-booking, and general destination information
Things covered by some policies
Some companies may cover these cases as a matter of course while others may require special add-ons to your travel insurance policy, or the purchase of a more expensive type of policy. Some insurers may not cover them at all.
If any of them could apply to you or to your trip, be sure to read the insurance policy's conditions carefully before buying.
- Pre-existing medical conditions
- Participation in dangerous sports or activities (such as scuba diving, parachuting, skiing, bungee jumping, etc.)
- Travel to conflict areas or other high-risk destinations
- Pregnancy complications after the first trimester
- Trip cancellation due to business or personal reasons
- Bankruptcy of airline, hotel, tour operator, etc.
Things covered by no, or almost no, policies
The following cases are normally not covered by travel insurance. A few of them may be covered by other types of insurance.
- Anything that you expected to occur or knew would occur
- Costs or complications arising from changes to laws
- Learning to operate any vehicle
- War, either declared or undeclared
- Riots and civil unrest
- Intentional self-inflicted injury or death
- Mental or nervous disorders
- Compensation for lost frequent flyer miles or award points
- Changes to your itinerary by an airline or tour operator
There are also coverage limits for certain high-value possessions like cameras and jewelry. If you will be bringing these, it is a good idea to make sure that your homeowner's or renter's insurance will cover the full amount.
» Read more: Types of policies